The United States government said it will continue to collaborate with Canada‘s initiative to reduce plastic waste in the world.
Globally, there is a growing policy and regulatory environment to encourage a reduction in fossil fuel-based virgin plastic production and for a minimum recycled content in packaging imposed by various governments.
For example, on July 21, 2020, the European Union announced a new tax on plastic waste effective January 1, 2021. This tax will have a rate of €800/tonne on non-recycled plastic packaging.
In the UK, a new tax of £200/tonne applies to plastic packaging produced in or imported into the UK that does not contain at least 30% recycled plastic, from 2022.
On the other hand, a law in California, United States, presented on September 24, 2020, requires that plastic bottles contain at least 15% post-consumer resin by 2022, 25% by 2025 and 50% by 2030.
Overall, Loop Industries expects the growing regulatory environment to further increase demand for recycled PET plastic.
In June 2019, Canada signaled its intention to reduce plastic waste by banning certain single-use plastics.
Canada then announced in an October 2020 discussion paper, titled A Proposed Integrated Management Approach to Plastic Products to Prevent Waste and Pollution, that its proposed ban would include plastic bags, straws, stir sticks, rings six-pack, cutlery and eating utensils.
Also Canada’s plan to manage plastics proposes improvements to recover and recycle plastics and establish recycled content requirements for products and packaging.
In accordance with the USTR, the United States commented on the discussion paper and the proposed order in December 2020, and requested that any implementing measures be notified to the World Trade Organization (WTO).
Canada published the final order adding “articles made from plastic” to Schedule 1 (“the Toxic Substances List”) of the Canadian Environmental Protection Act (CEPA) on May 12, 2021.
This designation gives the Canadian government the regulatory authority to manage the production, import and use of plastic.
On December 25, 2021, Canada published draft regulations to ban the manufacture, import and sale of certain single-use plastics in the Canada Gazette, which began a 70-day public comment period. Canada notified the draft regulation to the WTO on January 7, 2022.